The market is unpredictable, but people keep repeating the same mistakes.
Written by: Route 2 FI
Compiled by: aididiaojp.eth, Foresight News
1 Narratives come and go
Perhaps you still remember these expectations that once lingered in your ears, but now no one is talking about them.
How much is DeFi 2.0 talked about?
Everyone is talking about how BTC will hit $100,000 in 2021.
Will we never see ETH below $2500 again?
Will ADA save the crypto market?
2 No one is immune
Have you ever checked what coins you have in your wallet? Don’t we really need more than just Bitcoin and Ethereum?
Bitcoin is used as an inflation hedge tool, and Ethereum develops smart contracts.
3 About DeFi Yield
If the APR in a DeFi protocol sounds too high to be true, it probably is.
When you see a DeFi platform offering a 1% daily interest rate, what’s the first thing that comes to mind? Where does the money come from? In 99% of cases, the answer is: you.
4. Get in early
You see it time and again, people taking risky bets.
As you probably already know, the earlier you get in, the more money you'll make (profits usually come from people who get in after you).
5. FOMO Culture
Over and over I see people on Twitter defending their favorite coin like it’s their religion.
It seems like there is FOMO for every coin out there, but ask yourself what is most important.
If you want to make money, you have to abandon the sinking ship.
6 Due Diligence
Look at the message below and imagine if you can come up with three answers.
The problem is: I don't know his risk profile, market focus, strategy, funding, etc.
He probably suspected that I didn't really want to answer him.
7. Long-term investment
In my opinion, there are only 2 coins that are worth investing in for the long term, BTC and ETH.
I'm willing to change my answer as more coins stand the test of time.
The only reason I invest in altcoins is that they potentially have greater upside.
8 Certainty Bias
Don’t rely on Twitter for certainty or blindly follow the bets posted by others.
Instead, proactively seek out information, build investment ideas, and connect with smart people.
Your job is to filter all of this information and develop your own investment thesis.
9. No one knows where the market will go next
The best crypto traders on Twitter are the ones who admit they have no idea what’s going to happen next.
Through strict discipline, risking 0.5-2% per trade, and riding the trends, some of them consistently outperformed the market.
Read more about money management here: https://route2fi.substack.com/p/some-thoughts-on-money-management-22-07-17?utm_source=substack&utm_campaign=post_embed&utm_medium=web
10. Try investing your side hustle money
Don’t think you have to get rich quick, this will make you addicted to gambling and in most cases you will end up losing it all.
Instead, try to earn some extra money that you can invest.
A 50% return on $1,000 is $500, while a 50% return on $100,000 is $50,000.
11 Airdrop
If you have a small portfolio, I recommend getting involved in DeFi platforms that may give you airdrops, which is a quick way to give you some free tokens.
12. Frequently switch DeFi platforms
Focus on where the money is. If you want to make money in DeFi, be prepared to stake on different platforms.
You can’t just throw money into a DeFi yield platform and think you’ll get it back in 5 years.
The narrative changes so quickly, stay alert. Otherwise you might lose it all.
If you don’t have enough energy and time to focus on this industry (or let others do it for you), you shouldn’t get into DeFi.
13. Put safety above all else
Crypto is a macho league, if you screw up, no one can save you. There is no customer service in crypto, you can't call your dad.
14 Will your favorite token survive in the long run?
How many of the top 100 tokens in 2018 made it into this year’s top 100 list?
You know what I mean, the chances of your favorite crypto token surviving in the long term are slim.
Never marry your money bag, take profits and then take profits or end up at McDonalds with the rest of us.
